Monday Market Commentary

by Alex Stenback on August 1, 2005

                                                    Graphic Courtesy of MSNBC

Last Week: Rates Up Slightly, Highest Since May
Rates up again slightly last week on mildly encouraging GDP data, which was basically market nuetral, but nonetheless was the ninth straight quarter of 3.0+% GDP growth – a pace we have not seen since 1986.
This Week: Tread Carefully
Today’s Institute of Supply Management index and Friday’s non-farm payrolls report seem to be the numbers everyone is keying on this week – stronger than expected numbers in either release could push rates up quickly. Mortgage bonds are stuck in a very tight trading range, as Larry Baer (one of the market experts we follow) puts it:

"This [narrow trading range] suggests that a either a trend acceleration (lower prices and higher rates) or a short-term trend reversal (temporarily higher prices and lower rates) is likely soon…"

·This Week’s Economic Calendar []
·Latest Twin Cities Real Estate Market Report [pdf via MAAR]

Leave a Comment


Previous post:

Next post: